Soybean futures at the Chicago Board of Trade rallied Friday, after gapping higher on the open on a lower-than-expected quarterly stocks figure released by the government, traders said.
November soy was 10 cents higher at $5.70-1/2. The deferreds were up 9-1/2 to 13-1/2. Commodity funds were buyers; Refco bought 1,000 November, traders said.
The US Agriculture Department earlier Friday said the amount of soybeans in the hands of farmers and commercial firms on September 1 was 256 million bushels - below estimates for 294 million and USDA's latest 2004/05 end stocks estimate of 295 million issued earlier this month.
The September quarterly figure is the last stocks number of the 2004/05 marketing year for soybeans.
The smaller-than-expected stocks number reflected a 17 million-bushel cut in the US 2004 soybean crop to 3.12 billion bushels.
"They reduced production, which we expected, but we also expected to see offsetting reduction in residual usage - they didn't do that. So all of a sudden you end up with a lower ending stocks," said one-cash connected trader.
The soy products followed soybeans higher. October soymeal was up $1.20 at $168.30 per ton, with deferreds up $1.50 to $2.70. October soyoil was up 0.39 cent at 22.94 cents per lb, with deferreds up 0.28 to 0.48 cent.
Soymeal was higher despite unexpected deliveries against the October meal contract on first notice day Friday.